Why does DeFi choose the Ethereum public chain?

Defiprime data shows that among the 250 or so DeFi projects, about 200 DeFi projects are deployed on Ethereum, while EOS and Bitcoin only have more than 20 DeFi projects. Because of the fiery stimulation of the DeFi track, ETH once rose by 70 to 80% within a month.

At present, referring to third-party data, the total market value of DeFi tokens has reached 15 billion US dollars, exceeding the market value of all public chains except Ethereum. The Ethereum ERC-20 standard has issued nearly 300,000 tokens, while other public chains have only a few thousand tokens.

So many DeFi projects are built on ERC-20, why is there no DeFi ecosystem formed on other public chains? Don't other public chains covet the market value brought about by the rise in currency prices?

with the following reasons:

1. Quantity and precipitation of asset types. From the perspective of the historical development of Ethereum, most of the tokens in 2017 were generated through the ERC-20 protocol. These diversified tokens were deposited on the Ethereum network, which has very good interoperability and does not require cumbersome operations such as cross-chain , the transfer only needs to pay the Gas fee with ETH.

2. Strong liquidity, Ethereum is the smart contract platform second only to Bitcoin.

3. The performance is consistent, the transaction efficiency is high, and the asset swap in the single-chain of Ethereum is very safe and convenient.

4. Ethereum itself is a decentralized public chain, which has the trust of developers and users. Some decentralized exchanges have gradually formed and become the basis for the future development of DeFi.

5. Since 2019, Ethereum has been focusing on the development of DeFi. The DeFi ecosystem on Ethereum has reached a large scale and has already seized the market. It is not easy for later public chains to surpass it.

The rich and huge stablecoin system of Ethereum meets the basic financial needs of users such as asset mortgage and peer-to-peer lending, and enables the initial formation of open finance without access system.

Nowadays, the major public chains are constantly entering the DeFi market, wanting to take a share and occupy a place, and have invested a lot of manpower, material and financial resources. At present, they cannot shake the status of Ethereum.

But Ethereum is not without problems. Network congestion, high fees and dissatisfied developers have all drawn attention to its future relationship with DeFi.